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With the widespread growth of organizations, the manpower requirements also increase at a cumulative rate. With the entry of multinational corporations in India, the manpower requirements have increased considerably. Today, large organizations have numerous employees working for them. As a result, companies also need to hire people who have an extensive and thorough knowledge of the process of recruitment and management of the workforce of an organization. Such people are referred to as the Human Resource professionals, as they mainly deal with the human resources of the company. Presently, all organizations have a separate and distinguished Human Resource Department to particularly cater to the personnel requirements of the company.
This gives rise to the concept of Human Resource Management (HRM). It is basically referred to as, the process of managing people in organizations in a structured and thorough manner. This covers the fields of staffing, retention of people, pay and perks setting and management, performance management, change management and taking care of exits from the company. This is the traditional definition of HRM which leads some experts to define it as a modern version of the Personnel Management function that was used earlier. In the 21st century organizations, the HR manager or the people manager is no longer seen as someone who takes care of the activities described in the traditional way. In fact, most organizations have different departments dealing with Staffing, Payroll, and Retention etc. Instead, the HR manager is responsible for managing employee expectations vis-à-vis the management objectives and reconciling both to ensure employee fulfillment and realization of management objectives.